Bank of England cuts interest rates to 5% in first reduction since March 2020

Committee votes by five votes to four in favour of cut as governor says inflationary pressures have eased enough

• How will Bank of England rate cut affect my finances?
• Relief for borrowers but little sign big reductions to come

The Bank of England has cut interest rates for the first time in four and a half years, easing pressure on households after it raised borrowing costs to the highest level since the 2008 financial crisis in response to soaring inflation.

In a finely balanced decision after the worst inflation shock in decades, the Bank's monetary policy committee (MPC) voted by a narrow majority to cut its base rate by a quarter of a percentage point to 5%.